Has bullish momentum already faded for bitcoin and its peers or are they just gearing up for more rallies? Take a look at these charts!
Bitcoin seems to be in the middle of a correction we were hoping to get last week and might be bouncing off the area of interest already.
This support zone lines up with the 100 SMA dynamic inflection point, which is above the 200 SMA to confirm that the rally is more likely to resume than to reverse. If so, bitcoin could aim for the upside targets marked by the Fib extension tool.
Stochastic is also pulling up from the oversold region to indicate that buyers are taking over while sellers take a break. Bullish pressure could be enough to take price to the 50% extension at the swing high or the full extension near $4,700.
Ethereum might be done with its long-term slide as it forms a complex double bottom on its daily time frame. Price seems to have been rejected on the test of the neckline resistance, though, and might be in the mood to form another bottom.
The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside while stochastic is heading south, so price might follow suit.
If bulls are able to push for a break past $175, ethereum could climb by the same height as the double bottom, which spans around $90.
Litecoin is still in correction mode as it made a sharp retreat off its recent surge. Price is currently hovering around the 38.2% Fibonacci retracement level and 100 SMA dynamic support, which might be enough to keep losses in check.
A deeper pullback could last until the 61.8% level at $41.164 and the 200 SMA dynamic inflection point. This is closer to the rising trend line and a former resistance turned support level. Buyers might be ready to return anytime now since stochastic is turning higher.
XRP didn’t gain much bullish traction on its triangle upside breakout last week as its price action turned wonky in the past few days. Still, the bottom of the rising channel on the 1-hour time frame held as support.
Another test of the bottom might be due as the 100 SMA is below the 200 SMA and stochastic has some room to head back down. A return in buying pressure, on the other hand, could spur a break past the mid-channel area of interest onto a climb to the channel top.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!